Western Union's Turnaround Expected to Yield $2.45 EPS by 2028
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5d ago
0mins
Source: NASDAQ.COM
- Sustained Profitability: Despite increased online competition, Western Union remains profitable, consistently paying a quarterly dividend of $0.235 per share with a payout ratio around 55%, indicating strong cash flow stability and commitment to shareholders.
- Transformation Strategy: The company is transitioning into a digital-first payments provider and expanding into travel money, bill payment, and prepaid card services, with expected revenue growth of 20% from 2026 to 2028, significantly enhancing its competitive position.
- Acquisition Plans: Western Union is in the process of acquiring International Money Express, a Latin America-focused competitor, which is expected to be immediately accretive to shareholders, further strengthening its market presence.
- Valuation Potential: Currently trading at only 5.1 times forward earnings, if the company successfully transforms and achieves earnings of $2.45 per share, its stock price could potentially double within two years, showcasing strong investment appeal.
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Analyst Views on WU
Wall Street analysts forecast WU stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for WU is 9.00 USD with a low forecast of 7.00 USD and a high forecast of 10.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
11 Analyst Rating
0 Buy
7 Hold
4 Sell
Moderate Sell
Current: 9.340
Low
7.00
Averages
9.00
High
10.00
Current: 9.340
Low
7.00
Averages
9.00
High
10.00
About WU
The Western Union Company is a provider of cross-border, cross-currency money movement, payments, and digital financial services, empowering consumers, businesses, financial institutions, and governments. Its segments include Consumer Money Transfer and Consumer Services. The Consumer Money Transfer segment facilitates money transfers, which are primarily sent from its retail agent and owned locations worldwide or through Websites and mobile devices. Its money transfer service is provided through one interconnected global network. This service is available for international cross-border transfers and, in certain countries, intra-country transfers. The Consumer Services segment includes the Company’s bill payment services, money order services, retail foreign exchange services, media network, prepaid cards, lending partnerships, and digital wallets. The Company provides its services primarily through a network of agent locations in more than 200 countries and territories.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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